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tv   Bloomberg West  Bloomberg  May 18, 2016 6:00pm-7:01pm EDT

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today on the side of the border near macedonia. migrants were throwing rocks at authorities. also authorities lobbing tear gas to try to get things under control. there were no reports of injuries during that violence today. a new risk assessment from the world health organization on the zika virus says the chances of an outbreak are low to moderate. they say there's a high likelihood that the virus could spread in only three european .egions in washington, the house is debating a scale that zika virus bill that would provide only 1/3 of the resources requested by president obama. fighting among the migrants continued late into the night. fires burned at that border cap, police lobbing tear gas and stun grenades and migrants throwing rocks. authorities say the fighting
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began when migrants tried to push a rail car through a police blockade. one of the teenagers kidnapped s petiteharam extremist of years ago was found with a baby. "bloomberg west" is next. ♪ emily: this is "bloomberg west." we will break down and networking giant's future in an ever-changing world. plus, google sent out a wake-up call with daydream, the next generation for the tech giant in virtual reality. google's vp of vr joins us. and going live on twitter -- periscope has a new button for broadcast.
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lead -- the future of google is artificial intelligence. that was the message from the ceo as he kicked off the developers conference. google unveiled a new mobile messaging app that calls on the services a digital personal assistant, plus a voice-based search device called google home that will use the same technology to answer questions when you are at home. if it sounds like the popular amazon echo, that is probably the point. and third, a new virtual-reality program called daydream. our editor at large, cory johnson, has been in mountain view all day long on google's campus. let's start with a virtual reality. google already has a vr version of its apps, youtube. can they take on potentially apple in vr? cory: whoever it is will have to
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figure out how to create content for vr and figure out what kind of use cases there might need. was abouthe focus providing those kinds of tools, the kinds of cameras, the tools that story makers can use to use vr to create new kinds of content. very interesting stuff. emily: what do you make of this new google home device which looks an awful lot like amazon echo? looks like a duck and quacks like a duck, you can probably ask of the echo, "alexis, is this a duck?" some of the biggest computing companies in the world have been hiring like crazy. .ou had amazon doing it google hiring like crazy as well -- wele, so we can ask can start to expect some of
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these products to look-alike. these devices are sort of showing the way the machine learning can start to do some amazing things. in the amazon case, it is piggybacking the computing power they have. google has exactly that same kind of infrastructure behind they want to bring it all back to google search, and that's why it is so important. emily: a couple of other rivals they announced -- duo, a face .ime rival anything that makes these particularly unique? i think our low is very interesting. we will see ultimately what it looks like, but their notion is that machine learning is built into it. the messaging app will learn the kind of preferences you have. it will learn if you are someone who likes to respond when someone asks where are you at or start tont, learn the kind of person you are
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and the kind of response you have and make it easier for you to communicate on the fly. it is a fascinating usage of ai. while it has been studied for about 50 years, it has only become possible in the last couple of years. emily: it will be interesting to see how that google assistant feature performs. thanks so much. turning now to earnings out after the bell, higher forecast from cisco and salesforce dragging the stock higher in after-hours trading. cisco says revenue from acquisitions will help make up lukewarm demand in its main business. for salesforce, it's a sign that large paying customers are paying more on cloud software. i will start with you -- let's start with cisco. what are the main headlines you pull out? >> you mean salesforce?
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>> cisco. >> glenn is going to talk about cisco. go for it. :: cisco has been facing challenges for years as its core network products kind of flat and off. there's a lot of saturation in that marketplace. it's a great business, lots of cash flow, but that's not where growth is. the leadership of cisco recognizes that the growth is going to come from some of these newer areas where they are focusing their at visions, so cloud computing, internet of things. this is the new direction they have got to go into, and it's a very different world for cisco, but this is their future, and that's where growth will be. listen to chuck robinson, ceo, on the call. take a listen. overall: while the macro environment remains uncertain, we are nicely positioned to benefit from any rebound in the global economy.
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at the same time, we will continue to manage our business, capitalize on key growth areas in front of us. emily: how would you say he is doing so far infilling john chambers' big shoes? are indeed big shoes. john is a legend and took cisco from a small company to the behemoth it is. chuck is a smart guy. i have gotten to know him a little bit. he is great at execution and will take time to develop his real vision for the company, and this is a tech company. in the world of technology, you need a vision, and you need to execute. the vision is still largely the vision that chambers had cut out, but i think chuck is carving his path nicely. we need to give him more time to really turn it into his baby. you said cisco has been in there shall-challenged. how do they overcome that? they have this huge base
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of people who are basically networking people. going forward, as we look at things like cloud and internet of things, they will not necessarily be the same people. cisco needs to maintain the business and protect it, but also trying to move forward in these areas, and it's a big company. big companies are not all that nimble, as we know, but they have got to be able to, as they say, get that elephant to dance, and they can do it, but it's a lot more difficult because of that installed base and the way they have to protect it, and this huge army of people who base,hen their customer now they have to find new customers, and that will be difficult to do. call right, now let's talk about salesforce. marc benioff has been on the call trashing oracle and sap and how well salesforce has made their transition. is he right tackle >> this quarter has been truly
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impressive. microsoft did not have that good results. they talked about some slowdown in terms of tech spending. even their legacy cloud is missed, the sales cloud -- the growth for that accelerated in the quarter. overall, a very strong quarter for salesforce.com. emily: salesforce still struggles to turn a profit. how big of a problem is that? >> the margins have been going up. this quarter, they were of close to 288 basis points, and that is a very big deal because it leads to a lot more operating cash flow. on and they reduce the spending on sales and marketing as a percentage of revenue, you should see further marginal expansion. both so muchyou
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for joining us. tomorrow, do not miss cisco ceo "bloomberg go." tesla shares barely budging after the company announced a $2 billion public offering. the electric carmaker will sell about $1.4 billion worth of stock. the rest will be sold by ceo elon musk? why now? on the last earnings call, musk said he was planning to make as many as 200,000 model three's by next year as well as complete a massive battery factory in nevada and add more charging stations, which would require a 50% increase in spending, so tola needs extra cash deliver. as part of the announcement, musk announced he will donate roughly 2 million shares of tesla stock to charity. google's souped-up plan for an entire vr ecosystem.
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we will dive into virtual reality next. plus, more on the futuristic media when we sit down with the ceo of periscope. ♪
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emily: virtual reality is constantly on the verge of becoming the next big thing in tech, and google has been clear about wanting to stake its claim . now the next generation, and ecosystem called daydream. cory johnson asked google's bp to explain. >> it consists of phones with very high specifications to make
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sure they can render things smoothly and really get centered and a reference design for a headset and controller so you can slip your phone into something, have a comfortable experience, and interact with things richly. the components you require for this, the processing power has got to be massive. exciting is that today's mobile phones have enough computing power in them to drive this experience. cory: it's hard to do the calculation to try to figure out how powerful chips and phones are today. clay: it has been a while since moore's lawth, but and compound growth is very special. cory: you are trying to create a around virtual
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reality. i'm wondering what you think the imaginedrs of that industry would be? clay: to experience virtual reality, users need a device to experience it with and also things to experience. we try to enable the ecosystem toh tools and componentry start building those different components at once, so we are making investments across all parts of that, from the hardware to the devices all the way through applications and what people can do with it. example.e me an clay: one of the things we have done is create a controller that we were working with hardware manufacturers to create more versions of so any company creating a smartphone can also manufacture alongside in a controller and had that. we have done the hard work trying to figure out how to make
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something comfortable and how to make something great with great optics that is nice to use and can create a very immersive experience. knowledge tod that these companies to give everyone a leg up in pushing the are forward. what do you think the next killer app is going to be? clay: one app that i love lets you paint in space with light and paper and fire and any other material you can imagine, an artists are using it to create in sculpt amazing things virtual reality. the other thing i love is a virtual vision of youtube that we have built for vr, that includes things like audio that appears to come from where you actually are. it will let you visit concerts and events and roa places and experience them like you are actually there, but you don't have to fly away.
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there is a downside -- you will not get the frequent flyer miles. cory: playing "call of duty" for 18 hours on xbox can be exhausting. more vr is certainly immersive. we are focused on bringing amazing real-world content into vr. we have been building this camera that lets you capture an environment, and we think that will open up some pretty interesting things like taking you to machu picchu or stonehenge or the taj mahal. we think there is something very special about vr possibility to transport you to different places. large, coryditor at johnson, with google's vice president of virtual reality. a chinese group is looking to
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germants stake in a robotics builder. wants to upgrade its factories with technology to cut its reliance on more expensive human workers. its offer is valued at 5.2 billion dollars. coming up, google wants your machine to be smarter. we talk to research scientist about the latest push for better machine learning.
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emily: machine learning -- another big focus at this year's google io developers conference. our editor at large cory johnson, spoke with a google senior research scientist about machine learning. take a listen.
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questec. to learn from experience and learn from data in order to be more effective. that beste do we see at use right now? >> the technologies people are using on their mobile phone today that would have felt like magic five or 10 years ago -- most of those have machine learning baked into them in some critical way. a good example of this is google photos. i take a lot of pictures and always had the intention that i would organize my auto's and put them in categories, and i was never doing it. i just could not find my photos. now using this technology, you can search your own personal photo library for anything -- mys, dogs and get all of photos that contain this concepts without having to manually categorize them myself. lit google had to say this is what a hug looks like.
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>> discover these concepts. another really interesting example is how machines are becoming more conversational. they on -- they understand the concept of speech much better and they are learning speech much like humans do. they are learning syntax and grammar from exposure the way kids do, rather than from a brutal system of rules. this is something that has been studied a lot for a long time. >> yeah. there has been a huge break in the way that this technology is applied, so many of the core ideas, the mathematics, the scientific's, has been known for decades, but the move to products we have only really seen in the last five or 10 years, and i think a lot of that is getting computing power in the right places for the right price that is allowing these things to be built. cory: ai study has been around
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for 50 years. >> the technologies that work best depend on the technology you have available. you guys are hiring like crazy. i have talked with lots of different people in academics and business, which is a google in particular is hiring the best people from all around the world. fundamentally, it turns out machine learning is largely a human creative endeavor. machines do not teach themselves, right? in a certain sense, part of what is going on is there is a new groundswell of people that are interested in these technologies are able to get machines to learn, to coax them to learn. this is a big part of why we open source the platform.
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we think more and more software engineers and developers need to be able to learn to do these things to build the product of the future. seizeyou are trying to the market with more potential google engineers. >> the more people who know machine learning, the better. i really think the product that we want to see, the things that will feel magical and empowering to users in the next decade will have machine learning baked into them. when google is doing this, are you thinking that it is ultimately going to come back to search? >> i think it is best for us to think of this not as anchored to any particular product, but you do the machine learning research and try to see where the businesses are that this resonates with. we did it eventually launch one of our deep neural network systems to improve search ranking, but that was not the original mission of the project. it was just something that came
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out of it after a long series of research projects. yearswhen we look up five from now, do you think we will be surrounded by this stuff? actually already surrounded by it. the technologies we use and trust every day to get directions, to get search results, to get recommendations from netflix, all of these things are already using machine learning and intelligence. it's just that these things will get better. machine intelligence will start being the avoidance of machines that are stupid. we will have more from the google developers conference tomorrow when we sit down with the vice president of xaomi. gnocchi is making a comeback kid of years after the finnish company sold its handset to microsoft -- nokia is making a
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it sold two years after its handset to microsoft. they will collect fees from brand licensing and intellectual property. the nextbaba become major sponsor of fifa? it would become the second .hinese giant it would join adidas, coca-cola, and others in the elite club of c for partners. coming up, charter ceo tells us what is next now that the time warner deal is in the rearview mirror next. ♪
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iaae-m"
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fox news, citing its own survey, says in a potential
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presidential matchup, donald trump leads hillary clinton 45 percent to 42%. in their poll last month, mr. trump led 45 percent to 41%. the survey also shows trump .eading 55% to 43% among men the poll has a margin of error of three points. democrats on the senate judiciary committee held a mock confirmation hearing for supreme court nominee merrick harland -- garland. senate republicans have refused to hold hearings saying the supreme court nominee should not anput forward during election year. israel has successfully tested systemn dome rocket aboard naval ships for the first time. officials say it shut down a volley of rockets during a drill. china's top official for hong
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kong is denouncing calls for the city's independence. the highest-ranking chinese official to visit hong kong in four years told city officials and business leaders that rocking the boat will not do any good. he said separate is in will harm the economy and people's livelihoods. my colleague has a look at the markets. good morning. paul: good morning. currently the only market open, off by about .4% right now. we are expecting a flat start here, but modest gains on the nikkei. when japan starts trading, we will be closely watching shares in suzuki after the carmaker announced that its fuel testing not comply with japanese regulations, but it will not revise them because it says they were within an
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acceptable range. however, the stock dropped by yearsst in seven wednesday. hong kong announced a record profit, up 33% to $1.4 billion largely thanks to their nba broadcasts, mobile gaming, and entertainment as well. waiting ona, we are unemployment figures for april, expected to show a slight rise in the index to 5.8%, but it is notoriously volatile and difficult to predict. on one trend it has managed to beingt is part-time jobs created over full-time jobs. ♪
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emily: charter communications announced it acquired time warner cable or $55 billion. we caught up with the ceo to ask what changes time warner customers can expect as charter takes the reins. >> when we get what we call spectrum services deployed, that means we will have a interactive-art him user interface with search and discovery of content. we will integrate over-the-top services with that product so andwill be able to search see content in a seamless way, if it's an over-the-top service by us.rvice delivered we will take your data speeds up -- aut a two-way home two-way interactive outlet on every tv you have so you have an on-demand interactive outlet in
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a full range of services i just discussed. we will price and package everything in a compelling way so that it is competitive and better than what our competitors that with we will put a voice product that is fully featured, a data product that is faster than our competitors, and a video service that is better than our competitors, all hd and .ll interactive on every outlet >> one of the things you acquired with time warner is several of their regional sports networks. this was not really a thing charter did all that frequently, meaning wanting to go in and acquire regional sports networks. are you comfortable owning time warner's regional sports networks? is that something you want to add to as now the ceo of this
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larger company? weit was not the reason why wanted to do the transaction. we fundamentally believe that superiora infrastructure and that done well, it can be a really great product and really well resonate the sportsers, so channels were not the driver of this transaction, but they are there. they are valuable assets, and we will try to evaluate how that it's into our long-run strategy. strategy we went with in this transaction was just to do the business better, so there are all sorts of upside that come from the scale we are acquiring in the assets we are acquiring, but we are not really ready to say how we are going to implement those opportunities. speaking about doing the business better, what about program costs? how will you approach content ? oviders differently now
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>> it is interesting as content is changing the way it is distributing it self. the new charter is going to have more than a $9 billion year programming bill, and on that same platform, the content industry sells $4 billion or $5 , so we are a significant of content. one of the biggest cost drivers of all of our product over the last 10 years has been the rise of content cost, so we hope to get that under control, but we also hope to work with content companies are creating new products that create value for customers so customers actually are comfortable with what they are paying for. that has been a challenge with constantly raising rates. >> your largest shareholder has referred to time warner as a
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machine.l acquisition how quickly will we see charter do its next transaction, and are you specifically looking at some of the older builders that you will need to overbuild certain territories? 2 it requires us to build million passings, 2 million homes, and don't forget, we will be a company that starts with almost 50 million homes today. an issue but not a significant issue in terms of what we have to construct. we have just gone through two years of transactions and regulatory approval, so we do not have any new transactions in mind at the moment. we are going to integrate the products or the companies we have and try to make our strategy work, so i think at the moment, we will take a breather. charter communications'
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ceo speaking on bloomberg earlier today. facebook ceo mark zuckerberg is meeting with conservatives to discuss allegations the social network is biased in how it chooses political trending stories. among the dozen planned coming in response to a report published by gizmodo that says the team of editors lean towards liberal sources when selecting trending stories. we will bring you the latest tomorrow. 'seaking of facebook, expedia ceo expects the social network to follow google into the world of online travel booking. it is just a matter of time before facebook directs users to button.cations to a buy google now lets you book through its search engine, posing a threat to expedia and
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competitors like priceline. coming up, he go founded -- phenomenonn gaming twitch and he is now taking pictures onset -- taking pitches on snapchat. ♪
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emily: days may be numbered for the elevator pitch as entrepreneurs start polishing up their snapchat pitch. i caught up with the y common in her who came up with the idea to find out more -- the y combin ator who came up with the idea. just in: all these people were asking for advice.
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they were asking how they get started, they were sending me pictures, and it is this massive community of young people on snapchat. we figured we would go where they were and kind of hold competitions to see if we could source some good companies. emily: how does it work? antin: we open up application process for companies to apply to do a takeover. emily: vc's are increasingly using snapchat. of thoseatch a bunch and finally say you should do this? justin: i got into it in december after years of having snapchat and looking at, from a product perspective, not really .etting it i finally got it.
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like everyone else, i started watching dj khaled. emily: the bass were companies present their final product, there has been some criticism the best deals are already taken at this point. could you see this potentially replacing demo day, or the way that demo day currently works evolving? justin: snapchat is not going to replace demo day. we are going to evolve. oftentimes, the companies that do the best on demo day are not always the companies that do the best in the long run. we see that time and time again. companies like zen offense when at the most popular on demo day, but they ended up doing very well, but we are looking at evolving a process and trying to figure out how to make it more engaging for both the investors and the company. evolve themight you process? justin: i think doing something
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where there are more sitdown meetings was an idea we floated so investors were able to connect with the company's more directly and providing a way for them to do that. only: what is your take valuations right now? justin: they are going down. emily: really? justin: i think so. i think the investment appetite for vc's has gone down a little bit. the bighese just closed rounds, but i think they are waiting to see what will happen. nothing catastrophic. first -- asf the the founder of one of the first original live streaming experiments, what do you think about facebook live versus periscope and snapchat even and how this shakes out? justin: people clumps snapchat together with facebook live and
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periscope. emily: obviously, they are all very different. i think facebook live and periscope are all very similar. we all have these things that let people share video, but they did not take off, and i think the reason was it was very hard to get an audience. the interesting thing is now, by pairing it with twitter and with facebook, it is much easier for you to get an audience. emily: do you think facebook live could steal life? justin: i think facebook changes its mind on what it wants to prioritize on people's feeds every six or 12 months, so while it is popular now, it will not be in a year or two years.
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you have seen that before. they authorize video, and suddenly facebook feeds were full of video, and now live is on everyone's feet. i think facebook has the power to control or king make whatever applications they want. emily: what does that mean for twitter? justin: i think engagement is .igher than on facebook twitter has been able to create the fine and now periscope and enough people are using twitter every day that they could do the same thing. tv ended upn becoming quite a success. do you have any advice for other entrepreneurs? justin: we pivoted justin tv to twitch, and it ended up doing well. people are saying it was a crazy
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number, but the metrics have since we sold. when we sold, it was around 55 million viewers, and the last announced was 100 million. i think it is probably higher than that now. my advice to entrepreneurs is never sell your platform. do not forget to tune in this weekend. we will bring you our best interviews from the week including my interview with john thompson on "the best of bloomberg west" this weekend on bloomberg television. ♪
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emily: turning now to twitter's periscope.ing app users will soon have the ability to start a periscope broadcast rectally from twitter. the move comes almost 14 months after twitter acquired periscope, and like vine, twitter has for the most art given an independent to run as a
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standalone app. is this the first at towards bringing twitter and periscope together? joining us now with an exclusive interview from our other office, periscope's ceo, and we are periscope and -- periscoping this right now. >> awesome. emily: is this a step toward no more standalone periscope a pp? not at all. we've spent a lot of time investing and making periscopes more easy to watch within twitter. we have made it really easy to experience it, and this news you are referring to is the first step toward also making it easier to broadcast from twitter, so we still think there is a ton of value in having a separate app and separate real estate for watching and creating
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live broadcasts, but for all the people who spend time catching up on the news and interacting onh friends and fans twitter, we want to make it easy for them to go live on twitter as well. facebook has been making big moves in life. how big a threat do you think it is? i think imitation is the finest form of flattery, so i think it is great for people to get into the life space. the year ago, people were wondering if live was a fad. i am happy the narrative has evolved past the question of if live is even interesting. it is interesting that creators is doing time creating live companiesand other are thinking about the space. for us, we are still staying true to our vision of letting you see the world in real time and letting you share the world in real time using periscope and we are excited to continue that mission. in to how does this tie
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get twitter rights to stream things? how do you see twitter and periscope working more closely together? >> i think there is a wide variety of content that people want to watch live. there's a wide variety of content people want to stream live. you have premium content, highly produced professional content like nfl games, like your show, like other premium content that we sit down and watch on tv, and on the other side of the spectrum, you have true, user generated content created by someone's iphone and android, and a ton of stuff in between -- your son's little league game that might be streamed with multiple cameras. i think there's a time and place for all of those broadcast to be experienced in a shared way, and i think that's what periscope and twitter created, which is how should the experience of watching something life differ from sitting on your couch and watching television? that extends not just for user generated content that all kinds
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of live experiences, and that's the kind of these is that twitter and periscope together are pursuing, which is evolving that experience of what it is like to watch something life. family: what kind of advertising could we see come to periscope and when? >> we are not directly experimenting with advertising with periscope. during the super bowl, we saw to readers creating lots of interesting periscope content and experimenting with promoted tweets that have periscope's within them, so i think that is a powerful way for us to experiment with advertising and promotion leveraging the twitter framework without directly with advertising within the framework itself. this lots of interesting ways to monetize live content, the tried and true ways of doing it, which is pre-roll, mid-roll, and post-roll ads. we think there's lots of other clever ways we can monetize the
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platform, but within the real estate for now, our focus is ticking the experience of awesome, anddcasts once that ecosystem is robust enough, we can start to layer on advertising, but in the meantime, one of the beauties of having such tight integration levering -- is leveraging the mechanics. emily: you totally you were working on monitoring harassment. what kind of progress have you made their? >> we have helped broadcasters control the content their users are seeing on their broadcasts and also creating more tools for viewers. even if you are not broadcasting, as a viewer, you should have more control over the type of content you see, and dealing with unfortunate cases of trolling an abuse that exist all over the internet. we are working hard on a number of things and you will not have to wait too long to hear more on that. us maybe we can hop back on and when it is live.
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emily: i would love that. what kind of events could we see jerome used for -- things like the olympics? >> is interesting to us is making it easier or broadcasters to be creative while broadcasting. have created a burgeoning ecosystem of athletes and adventurers and anyone who is in -- anyone who is an extreme sports enthusiast now has another reason to broadcast live. the thesis was similar -- a lot of people who were hobbyists or professionals use drones to in a certain craft way. the drone racing community now is focusing on periscope because these folks are using their drones with periscope broadcast their drone races live. we are really excited to see
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what use cases people can pursue now that that capability is available. emily: always great to have you here on the show. thanks so much for stopping by. time now to find out who is having the best week ever -- the best day ever. today's user is an apple user named james pink stone, who described frustration with itunes saying 122 gigabytes of his music collection had been erased for no apparent reason. later, apple sent into his to his house to replicate the issue. they found the problem was their own, a bug. the latest version of itunes fixes this. tomorrow, we pick up from the google developers con rents -- conference. ♪
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♪ >> from our studios in new york rose."his is "charlie charlie: josh is here, the president and ceo of amc networks. the network has made cable-television a destination for high quality, scripted shows. and see made a name for themselves with the critically acclaimed series, mad men, and the other one, "breaking bad." their brands also include ifc and sundance. their expanding boundaries of the cable television industry. he was an early champion of video on demand.

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